Going Abroad Without Getting Into Debt

For many families, the cost of a job abroad is paid by borrowing. That can work if the terms are clear and the job is what was promised. It can also trap a worker in debt, with the lender or a recruiter holding all the power. This guide explains how to borrow less and borrow safely.

How debt starts

• Fees and costs are asked for before the job starts.
• Money is borrowed from a relative, a local lender or someone connected to the recruiter.
• The job pays less than expected, or starts later, and the loan keeps growing.

Reduce what you need to borrow

• Add up every cost with our cost planner, and ask who is meant to pay each one.
• International fair-recruitment guidance says workers should not bear recruitment fees or related costs. Ask for any cost you are asked to pay to be explained in writing.
• Avoid paying for services that are not needed to get the job.
• Check the recruiter with your own government before you pay anything. Our verify page shows how.

Before you borrow

• Ask for the full terms in writing: the amount, the interest, the repayment dates, the charges and what happens if you are late.
• Work out the total you will repay, not just the monthly amount.
• Compare at least two sources. A family loan with clear terms is usually safer than an informal lender.
• Be very cautious with any loan arranged by the recruiter or a person connected to them. A debt to someone who also controls your job gives them power over you.
• Do not give your passport, land papers or other important documents as security without advice.

Warning signs

• Interest or charges that grow quickly.
• A lender who will not put terms in writing.
• A requirement to repay from your wages directly to the lender or recruiter without a written agreement.
• Pressure to borrow now or lose the job.
• Debt that you are told to repay even if the job does not happen.

Debt bondage

Debt bondage is when a worker has to work to repay a debt on terms they cannot control. It is a recognised form of forced labour. If you feel you cannot leave a job because of a debt, contact your embassy or a worker support organisation.

If you are already in debt

• Keep every record of what you owe and what you have paid.
• Talk to your lender early if you cannot keep to the plan. Agreeing a change is better than missing payments.
• Ask for help from your embassy or a migrant worker support organisation if the terms are unfair.

This guide gives general information, not financial or legal advice.